Pea protein is a nutritious plant-based protein source that provides all nine essential amino acids, making it a versatile foundation for meat alternatives, dairy substitutes, and protein powders. However, the US market for pea protein is facing a significant challenge, threatening the livelihoods of local producers and the integrity of the domestic supply chain, explains Tyler Lorenzen, CEO of Puris.
[perfectpullquote align=”full” bordertop=”false” cite=”” link=”” color=”” class=”” size=””]”By addressing this situation, we strive to uphold the integrity of our domestic supply chain”[/perfectpullquote]
Earlier this year, PURIS, a leading manufacturer of non-GMO, plant-based ingredients derived from soy, pulses, lentils, and corn, filed petitions with the US Department of Commerce (DOC) and the US International Trade Commission (ITC) on behalf of the US domestic industry to highlight a concerning issue. The company claims Chinese companies are dumping high protein content (HPC) pea protein into the US market at less than fair market value while also receiving substantial financial support from the Chinese government.
These petitions focus on a specific type of pea protein with a high protein content (more than 65%) that is used in a wide range of products, from plant-based meat and dairy alternatives to dry beverage blends and pet foods. As an alternative to animal protein, HPC pea protein has carved a niche in the market, but the unfair practices noted by PURIS have put American producers on shaky ground.
Price discrepancy impacting consumers
The significant price gap between locally sourced pea protein, as exemplified by suppliers like PURIS, and the cheaper overseas alternatives, trickles down into the final product prices. As PURIS continues to secure partnerships to accelerate the growth of its pea protein, the competition from Chinese pea protein imports is generating concern.
CEO of Puris, Tyler Lorenzen, spoke with vegconomist regarding recent developments in the company’s investigation, stating that, in August, the ITC unanimously voted to continue investigations into the alleged dumping and subsidies related to HPC pea protein imports from China in 2022, recognizing the potential harm inflicted on the US pea protein industry. As a result, the DOC initiated further antidumping duty (AD) and countervailing duty (CVD) investigations, with alleged dumping margins between 18.48% and 280.31%.
Import volumes highlight market share
According to the International Trade Administration, the United States imported a whopping 65,643,485 kilograms of HPC pea protein from China, with a total value of $267,341,307, underscoring the substantial market share at stake.
Lorenzen stressed the broader implications of these actions, saying to vegconomist, “Our commitment to fair trade extends beyond our organization; it encompasses the broader industry and the economic stability of our nation. A market operating on a level playing field benefits everyone involved—our network of hundreds of farmers, manufacturers, suppliers, investors, and consumers. By addressing this situation, we strive to uphold the integrity of our domestic supply chain, support local businesses, and foster an environment where healthy competition thrives.”
PURIS expects a preliminary decision in the countervailing duty case by December of this year, with a corresponding decision in the antidumping case slated for February 2024.
